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DIY Industry: Back to the Future – What needs to be done now

Due to the advancing digitalization, which slowly but indeed touches the DIY industry as well, companies are challenged with the development of new strategic approaches concerning the entire business portfolio.

Task for now: Develop new business concepts

A UEC Ulrich Eggert Consult + Research short study presented in the „baumarktmanager” Magazine follows up with this change.  Subsequently, the researchers worked out potential strategic solutions for companies to deal with digitization in the fields of sales and distribution.

Following advices and tendencies will play a central role for the future DIYindustry: Companies need to be prepared for several, different future scenarios which can be implemented immediately if needed. Some might be sales oriented, focusing on all possible analogue and digital distribution channels, and others might be service oriented, providing a wide range of services. At the same time, companies need to make use of the possibility of existing frequencies of potential customers.. In other words, the industry should optimize its current branch network towards city centers, densely populated housing areas and regions attracting huge crowds of people.  All on the conditions of less presentation space and larger space for E-Commerce applications. Thus makes the entire product portfolio more available for the customer in a modern way by using selectively presented goods primary as an emotionalizing and brand presenting instrument.

Need for action in the DIY trading sector

In this course, the Cologne Institute for Commercial Research outlines in its 2016 branch report the importance of a strong growth in the fields of craft and garden. To keep up competing with Global Players in the e-commerce business like Amazon, the DIY trading sector needs to keep forwarding its e-commerce businesses. In this context, the ICR outlines the customer as central base for new corporate strategies.

Indeed, companies need to analyse the customer in view of his behavior and approaches first. At the same time, you can also watch a tendency to service and experience oriented customers in the DIY trading sector. Here the branch can, for instance, meet the risen need for information due to digitization by using different cross-channeling touchpoints with the customer. The stationary trading sector therefore is responsible for establishing the existing customer trust and reputation as professional provider with comprehensive knowledge in the fields of craft and garden as an advantage distancing you from the competition. Especially when it comes to purchase occasions like small to middle DIY activities, renovation and modernizing as well as gardening and construction, construction markets and DIY stores are still a strong part of customer journeys, according to an ECC “Customer-Journey-Benchmarking” report from 2016 about craft and garden.

Overall, the DIY trading sector of the future faces three essential challenges in the context of digitization: Cross-Channel-Distribution, new sales and presentations concepts in stores and changing requirements for the sales staff. Each DIY company needs to face these challenges among the objective of a market positioning as the ultimate professional partner for your DIY project. Not only to delimit your business from the global players of e-commerce strategically, but also to prepare your business model for the digital future.

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